The verdict in three sentences
For a Lagos merchant, the winner depends on your basket size because of the fee cap: Paystack's NGN 2,000 cap makes it cheapest on large tickets, while Flutterwave's 1.4 % local rate wins on small ones. Moniepoint shines on bank transfers with flat, low pricing. Watch two hidden costs beyond the percentage: settlement timing (T+1) and reserve holds on new accounts.
The processor fee comparison
The figures below are 2026 estimates (order of magnitude) for a verified merchant account in Nigeria.
| Processor | Local fee (est.) | Fee cap | Settlement | Reserve hold |
|---|---|---|---|---|
| Paystack | 1.5 % + NGN 100 | NGN 2,000 | T+1 | Possible (new) |
| Flutterwave | ~1.4 % | ~NGN 2,000 | T+1 | Possible (new) |
| Moniepoint | flat/transfer-based | low flat | T+1/instant | Rare |
The fee cap is decisive: on a large order, Paystack's NGN 2,000 ceiling beats an uncapped percentage; on many small orders, the fixed NGN 100 per transaction adds up.
Net revenue on a typical month
For a store doing NGN 5,000,000/month, here is the fee bite by mix. NGN figures are approximate 2026 orders of magnitude.
| Scenario | Effective rate | Monthly fees | Net collected |
|---|---|---|---|
| Few large tickets (Paystack cap) | ~0.9 % | ~NGN 45,000 | ~NGN 4,955,000 |
| Many small tickets (fixed NGN 100 bites) | ~1.9 % | ~NGN 95,000 | ~NGN 4,905,000 |
| Transfer-heavy (Moniepoint) | ~0.7 % | ~NGN 35,000 | ~NGN 4,965,000 |
Matching processor to basket profile can save NGN 50,000+/month — real margin on thin-markup goods.
Become a Kolonell referral partner
Connected with founders or merchants in Lagos who need a store or a website? Become a Kolonell referral partner and earn: 15 % + 5 % recurring on a showcase site, 12 % on e-commerce, 10 % on a marketplace, 8 % on institutional. You introduce, we build, you get paid.
Mini case study
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Chidi, who runs a fashion store in Lagos, does NGN 5,000,000/month across many small NGN 8,000 orders. On Paystack the fixed NGN 100 per transaction pushed his effective rate to ~1.9 %, or NGN 95,000/month. By steering repeat customers to bank transfer via Moniepoint (flat, low) and keeping cards for new buyers, his blended rate fell to ~1.1 %, or NGN 55,000. Saving: NGN 40,000/month, about NGN 480,000/year.
FAQ
Paystack, Flutterwave or Moniepoint in Lagos in 2026?
It depends on basket size. Paystack (1.5 % + NGN 100, capped NGN 2,000) wins on large tickets; Flutterwave (~1.4 %) on small ones; Moniepoint on bank transfers with low flat pricing.
How does the fee cap change my cost?
Paystack's NGN 2,000 cap means large orders pay a tiny effective rate, but the fixed NGN 100 per transaction hurts on many small orders. Match the processor to your basket profile.
What is the settlement time?
Expect T+1 across Paystack, Flutterwave and Moniepoint. New accounts may face temporary reserve holds, so plan cash flow for the first weeks.
What are reserve holds and do they apply to me?
A reserve temporarily withholds a share of settlements on new or high-risk accounts. They are possible on Paystack and Flutterwave for new merchants and rare on Moniepoint.
Can Kolonell integrate all three?
Yes, we integrate Paystack, Flutterwave and Moniepoint with tested webhooks and smart routing to minimize fees by basket size.
Let's talk about your project. We wire the right processor mix in Lagos to protect your margin on every order. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
